A. The Board shall provide financial review guidelines for use in preliminary evaluations of water quality projects. The evaluation shall include such information as required by the Board, including but not limited to the:

1. Cost of the water quality projects;

2. Amount of the loan requested;

3. Repayment schedule; and

4. Existing and anticipated assets and liabilities of the applicant.

B. Upon a determination of the Board that an entity meets the criteria to receive funding pursuant to the provisions of this act, the Board shall make an initial financial review.

C. The Board shall prepare its initial financial review of the entity based upon:

1. The documents submitted by the entity and any additional information requested by the Board necessary to make a financial review of such entity; and

2. The proposed loan amount and interest rate for which the entity qualifies.

D. The initial financial review may either recommend approval or rejection of the proposed loan.

E. If the Board recommends rejection, the written recommendations shall include reasons for said rejection. The Board shall forward a written copy of the rejection notice to the entity. The entity may then be allowed to modify any such documents in order to comply with the requirements of the Board and may resubmit the necessary financial documents to the Board.

F. If the Board recommends approval, the Board shall notify the entity of such acceptance.

G. If the loan application is for a watershed management or nonpoint source pollution control project, the application shall include a written concurrence by the Oklahoma Conservation Commission, or the Department of Environmental Quality, whichever agency has jurisdiction, that the proposed water quality project:

1. Meets or will meet a critical local or state need, as defined in the State Nonpoint Source Assessment and Management Report;

2. Is needed or will be needed to comply with the State Nonpoint Source Assessment and Management Report;

3. Is designed to prevent, reduce, or halt the pollution of the waters of the state;

4. Is cost-effective; and

5. Will be awarded on a cost-share basis, as required.

H. Upon review of the application and applicable documents, the Board shall either approve or reject the loan application. The Board may request additional information from the applicant or the Department of Environmental Quality or Oklahoma Conservation Commission, as applicable, in order to complete the financial review of the application for the loan. The Board shall notify the applicant of any rejection of an application.

I. Upon the closing of the loan, the Board shall authorize disbursement of funds from the account pursuant to the provisions of this act, the loan documents and rules of the Board that provide for the release of the loan proceeds.

J. Payment on loans shall be made to the Board as provided in the loan documents.

Added by Laws 1988, c. 202, § 8, operative July 1, 1988. Amended by Laws 1993, c. 145, § 330, eff. July 1, 1993; Laws 2002, c. 322, § 8, emerg. eff. May 30, 2002.